You have estimated the life of your design to be three years. You expect that a capital
Question:
You have estimated the life of your design to be three years. You expect that a capital investment of $20,000 will be required to get it into production. You also estimate, based on sales forecasts, that the design will result in an after-tax profit of $12,000 the first year and $16,000 the second year, and a $5,000 loss the third year. Management has asked for an 18 percent return on capital investment. Should we go ahead with the investment to produce the new design? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
Use present value of a...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Niebels Methods, Standards and Work Design
ISBN: 978-0073376318
13th edition
Authors: Andris Freivalds, Benjamin Niebel
Question Posted:
Students also viewed these Human Resource Management questions
-
You have been asked to design a diversity-training program for incoming freshmen at your school. Try to answer the questions presented above in this context: Develop a method for the training...
-
You have just lost your middle-management job. Outline a procedure to follow in trying to land a new one.
-
You have been asked to design a rater-training program. What types of elements would you build into the process?
-
ARTICLE: Reference Resolve Asset Management's Yes, You Can Eat Sharpe Ratios. 1- The author spoke to two ways for the foundation to meet its target return of 5%. Identify what the two ways presented...
-
We noted in section 13.13 that an NMR spectrum is an average spectrum of the conformations populated by a molecule. From the following data, estimate the percentages of axial and equatorial bromine...
-
The steps in managements decision-making process are listed in random order below. Indicate the order in which the steps should be executed. Determine incremental changes. Review results of Make a...
-
Understand how to manage the diversity of international accounting and tax practices. LO.1
-
Mons Weatherby owns a sports brokerage agency and sells tickets to major league baseball, football, and basketball games. He also sells sports travel packages that include game tickets, airline...
-
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company. 2 The company paid...
-
Download the rejected loans dataset of LendingClub data titled RejectStatsA Ready from the Connect website and do an Excel PivotTable by state; then figure out the number of rejected applications for...
-
How much capital could be invested in a new method if it is estimated that $5,000 would be saved the first year, $10,000 the second year, and $3,000 the third year? Management expects a 30 percent...
-
In the Dorben Company a materials handling operation in the warehouse is being done by hand labor. Annual disbursements for this labor and for closely related expenses (social security, accident...
-
Define each of the following terms: a. PV; i; INT; FVn; PVAn; FVAn; PMT; m; iNom b. FVIFi,n; PVIFi,n; FVIFAi,n; PVIFAi,n c. Opportunity cost rate d. Annuity; lump sum payment; cash flow; uneven cash...
-
The composition of moist air is given on a molar basis to be 78 percent N2, 20 percent O2, and 2 percent water vapor. Determine the mass fractions of the constituents of air. Use the table containing...
-
1. Consider the LFSR with so = 1, 8 = 1, S2 = 1, 83 = 1, 84 = 0, and Sn Sn-2 Sn-3+ Sn-5. Find the next 15 terms in this LFSR. What is the period of this LFSR? 2. Suppose you learn that a Hill cipher...
-
Assume that you are thinking of a new acquisition campaign for SEDO, assuming that you want to convert people who are already engaged. Develop a big idea (in the communication) that you can use in...
-
You have a backend Amazon EC2 instance providing a web service to your web server instances. Your web servers are in a public subnet. You would like to block inbound requests from the internet to...
-
Consider the following task set. Task C T|D T1 20 50 40 T2 10 40 30 T3 5 20 15 a) Verify whether the task set is schedulable under DM using the processor utilization-based ap- proach. b) Verify...
-
What does a dashed line mean in the graph of an inequality?
-
1. Which of the four major types of information systems do you think is the most valuable to an organization? 2. How do you critically associate the ideas of business agility and business efficiency...
-
By installing some elaborate inspection equipment on its assembly line, the Robot Corp. can avoid hiring an extra worker who would have earned $26,000 a year in wages and an additional $7500 a year...
-
Annual maintenance costs for a particular section of highway pavement are $2000. The placement of a new surface would reduce the almual maintenance cost to $500 per year for the first 5 years and to...
-
An investor is considering buying a 20-year corporate bond. The bond has a face value of $1000 and pays 6% interest per year in two semiannual payments. Thus the purchaser of the bond will receive...
-
thumbs up if correct A stock paying no dividends is priced at $154. Over the next 3-months you expect the stock torpeither be up 10% or down 10%. The risk-free rate is 1% per annum compounded...
-
Question 17 2 pts Activities between affiliated entities, such as a company and its management, must be disclosed in the financial statements of a corporation as O significant relationships O segment...
-
Marchetti Company, a U.S.-based importer of wines and spirits, placed an order with a French supplier for 1,000 cases of wine at a price of 200 euros per case. The total purchase price is 200,000...
Study smarter with the SolutionInn App